last CVX price was $175.50
('2022-12-09',
'2022-12-16',
'2022-12-23',
'2022-12-30',
'2023-01-06',
'2023-01-13',
'2023-01-20',
'2023-02-17',
'2023-03-17',
'2023-06-16',
'2024-01-19',
'2024-06-21',
'2025-01-17')
Kerry Back
A financial option is a right to buy or sell a financial security.
The right trades separately from the (underlying) security and usually even on a different exchange.
The rights are not (usually) issued by the companies who issue the underlying securities.
Instead, the rights are created when someone buys one from someone else. The number that exist at any point in time is called the open interest.
A call option gives the holder the right to buy an asset at a pre-specified price.
A put option gives the holder the right to sell an asset at a pre-specified price.
The pre-specified price is called the exercise price or strike price.
An option is valid for a specified period of time, the end of which is called its expiration date or maturity date.
Most financial options can be exercised at any time the owner wishes, prior to maturity. Such options are called American.
There are some options that can only be exercised on the maturity date. They are called European.
Both types are traded on both continents. Stock options traded on the CBOE in the U.S. are always American.
You pay upfront to acquire an option. The amount you pay is called the option premium. It is not part of the contract but instead is determined in the market.
The buyer of an option pays upfront and then has an option. The buyer is said to be long the option.
The seller of an option receives the buyer’s payment and then has an obligation. The seller is said to be short the option.
For exchange traded options, the exchange clearinghouse becomes the counterparty to both the longs and the shorts.
When a long chooses to exercise, the clearinghouse delivers.
Simultaneously, the clearinghouse randomly chooses a short and requires it to deliver to the clearinghouse.
Sellers of options must post margin, so the clearinghouse and their brokers are confident they will be able to deliver.
Anyone with an appropriate brokerage account can at any time either buy or sell an option.
Individuals usually buy options instead of selling them, though they may sell as part of a portfolio (e.g., buy one option and sell another).
After buying an option, investors usually sell it later instead of exercising. However, the right to exercise is what gives an option its value.
last CVX price was $175.50
('2022-12-09',
'2022-12-16',
'2022-12-23',
'2022-12-30',
'2023-01-06',
'2023-01-13',
'2023-01-20',
'2023-02-17',
'2023-03-17',
'2023-06-16',
'2024-01-19',
'2024-06-21',
'2025-01-17')
<class 'pandas.core.frame.DataFrame'>
RangeIndex: 32 entries, 0 to 31
Data columns (total 14 columns):
# Column Non-Null Count Dtype
--- ------ -------------- -----
0 contractSymbol 32 non-null object
1 lastTradeDate 32 non-null datetime64[ns, UTC]
2 strike 32 non-null float64
3 lastPrice 32 non-null float64
4 bid 32 non-null float64
5 ask 32 non-null float64
6 change 32 non-null float64
7 percentChange 32 non-null float64
8 volume 29 non-null float64
9 openInterest 32 non-null int64
10 impliedVolatility 32 non-null float64
11 inTheMoney 32 non-null bool
12 contractSize 32 non-null object
13 currency 32 non-null object
dtypes: bool(1), datetime64[ns, UTC](1), float64(8), int64(1), object(3)
memory usage: 3.4+ KB
| 0 | 1 | |
|---|---|---|
| contractSymbol | CVX221209C00090000 | CVX221209C00105000 |
| lastTradeDate | 2022-11-08 17:24:07+00:00 | 2022-11-21 17:01:10+00:00 |
| strike | 90.0 | 105.0 |
| lastPrice | 95.6 | 71.9 |
| bid | 84.95 | 69.95 |
| ask | 85.25 | 70.3 |
| change | 0.0 | 0.0 |
| percentChange | 0.0 | 0.0 |
| volume | NaN | NaN |
| openInterest | 0 | 2 |
| impliedVolatility | 0.00001 | 0.00001 |
| inTheMoney | True | True |
| contractSize | REGULAR | REGULAR |
| currency | USD | USD |